Toyota Increases Car Exports by 164% in 2021; Company Awaits Reforms to Assess Investments

Toyota Is Having Great Results This Year Despite the Pandemic. Company Awaits Reform Outcomes to Analyze Investments

The devaluation of the Real against the Dollar surged with the advancement of the pandemic last year and this year. However, Toyota’s production in Brazil skyrocketed precisely during the pandemic period. The company took the opposite path of many businesses that ended up shutting down and forcing thousands of families  to seek new jobs. The number of cars exported reflects the good moment of the company in the country.

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Proof of this is that, between January and April of this year alone, Toyota exported a total of 18,689 cars, representing a jump of 165% compared to the same period last year. Neighboring countries such as Argentina, Peru, and Colombia received Toyota cars manufactured in Brazil. 

Roberto Braun, director of government relations at Toyota, spoke with the website O Antagonista, where he explained more details about the current moment the company is facing in Brazil: “The devalued Real and excess idle capacity favored exports, which brought us good results.” 

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Domestic Market  

Toyota’s sales in the domestic market remained stable in the early months of 2021 compared to the same period last year. It was a variation of 0.1%, selling a total of 46,568 units nationwide. Braun also highlighted to Antagonista that the company did not need to lay off employees, and in addition, made hires. The company provides jobs and income to a total of 5,3 thousand Brazilians. 

“With the constant openings and closures due to the pandemic, it’s very difficult to make any predictions. Therefore, just maintaining sales has been a great result,” declared the company’s executive. 

Future of Toyota and Job Creation

Braun also talked about the country’s situation. He emphasized that he is hoping for the tax reform to succeed. Currently, the proposal is progressing very slowly in the national congress. He also noted that further investments from Toyota in Brazil will depend directly on the progress of the important reforms for the country’s economy. 

“We are hoping because tax reform means a better business environment, it means predictability. For now, we have maintained our last investment in Brazil — of US$ 1 billion since 2019 – but we do not have a clear scenario to continue investments going forward. That will depend on the reforms.” Said the Toyota director. 

Ford Left Brazil  

Toyota is doing something completely different from what Ford did. The company left the country and laid off thousands of workers. Last week, for example, the company reached a labor agreement with 4,000 employees in Bahia.